One of the biggest factors behind the rise in gold prices is negative interest rates. Japan’s central bank last month to join the Bank of Switzerland

On the price of gold in 10 consecutive trading days up more than 10% is in 2011 and then Kanazawa coincided with ten gains in the last wave. Soon after and in 1920 an ounce above $touch the top.
The speed and magnitude of the current round of rising, so that the price of gold is likely to occur in the near future profit taking and shocks. But in the long run, the price of gold should rise.
One of the biggest factors behind the rise in gold prices is negative interest rates. Japan’s central bank last month to join the Bank of Switzerland and the European Central Bank, including a growing number of central banks, the introduction of a negative interest rate replica Van Cleef & Arpels jewelry policy to stimulate consumer spending. Sweden’s central bank on Thursday said it would further cut the interest rate, and warned that it could be lowered again. Canadian officials are also considering lower borrowing costs to zero.
And Federal Reserve Chairman Ben Yellen (JanetYellen) this week, said the Fed is studying the need to cut short-term interest rates to negative feasibility.
When interest rates rise, gold is usually hard and any capable of generating income investment products competition, but when the cost of borrowing is negative, and this disadvantage of gold is not so important, so as to more investors to own gold to open the door.
Gold rose again shows that some gold investors are increasingly worried that the central bank to prevent the financial crisis, the more force not from the heart, this concern has boosted the yen, the U.S. Treasury and gold and other safe haven assets.
KitcoMetals global head of trading Hargreaves PeterHug said such concerns dominant mind trading momentum is very strong, investors are selling, the ensuing cash to find a resting place, now the choice is gold.
At the same time, investors are pulling out of Europe and the United States Van Cleef and Arpels jewelry replicas banking stocks, as the financial market conditions deteriorate, and investors are concerned about the continued exposure of these banks to the risk of oil prices.
Speculative bets on gold have become more optimistic in recent weeks. Regulatory data show that in January, hedge funds and other investors on the daily size of $60 billion in gold futures market bets have emerged? Long, and since mid November last year, these investors have been betting on gold prices fell.
If economic growth accelerated, or the central bank to abandon the policy of negative interest rates, gold rally may end. Even some well-known investors to bet on gold have Shuaiguo somersault.
During the financial crisis by short the real estate market to Van Cleef and Arpels replica jewelry become a billionaire’s, John Paulson, will he management under the command of about 30 billion dollars in assets and $2.5 billion in his own capital to invest in gold. He withdrew his investment about three years ago after a loss.
When inflation is moderate and the crisis is easing, the price of gold will go down.
However, when interest rates are expected to remain low or lower, especially in the United States, when adjusted for inflation, interest rates are negative, gold prices are generally higher. 2010, the real interest rate of 2 year U.S. Treasury bonds fell to -1.3%, the price of gold from $1100 to $/ ounce rose to more than $1400 / oz. Over the past year, real interest rates have been moving toward a slow recovery.
Gold usually performed well during the most difficult times. 2008 investment bank Lehman Brothers bankruptcy, people worried that the financial system is in the brink of collapse, the price of gold continued to rise over the next three years, the cumulative increase of 160%.
Although last year, the stock market is sometimes violent fluctuations, but in 2015 the price Van Cleef Arpels jewelry replicas of gold fell by 10.5%. Market is expected in 2016 the Federal Reserve will be greater efforts to raise interest rates. The Federal Reserve is expected to raise interest rates will support the dollar, so that the price of gold fell.
But in December last year, the Federal Reserve to raise interest rates by 0.25 percentage points, the market is currently showing the possibility of the Fed’s action again this year is decreasing.
Many investors believe that the depreciation of the dollar will continue imitation Van Cleef Arpels jewelry to bring a boost to gold. Since February 1st, the dollar has fallen by 4% against a basket of currencies. When the dollar falls, the cost of foreign investors to buy the dollar denominated gold will fall.
Note: the price of gold is usually higher when the dollar falls, while the dollar is up. The relationship between the two is interest rate. When interest rates rise, the opportunity cost of holding gold will rise. Gold will not live, but also the cost of storage and insurance.
According to the Pedersen Institute for international economics, the dollar could fall further. This according to a country’s current-account balance to estimate the exchange rate movements of thought, the dollar remains the world’s most overvalued currencies.
By low commodity prices and the impact of the devaluation of the currency, some of the funds Van Cleef Arpels jewelry wholesale outflow emerging markets, this part of the funds have been flowing gold. Citigroup (CitigroupInc.) senior strategist AakashDoshi estimates, as of the end of January, there are $2 billion investment capital from the U.S. stock market and emerging markets to gold.
Analysts said that some of the funds may come from China, in order to resist the impact of the stock market and the RMB further decline, where investors are seeking refuge. Securities (TDSecurities) commodity strategy director BartMelek said that in January most of the time the price of gold in Shanghai traded higher than the London market, the demand is rising.